The Effects of War and Peace on Foreign Aid
Foreign aid is very necessary and significant for economic growth in developing countries. Foreign aid it isn’t just about money. Foreign aid is anything one country gives or provides for the benefit of another country. That includes goods, food, technical support, money, military, politics and social economics. Foreign aid money can be donated for good services money is sometimes given straight to the foreign government, but majority of it goes to the USAID. Foreign aid meets many different needs. Foreign aid can be for positive gains and negative gains as well especially when it’s the government controlling the outcome of the funds. Rather or not they want peace or war can affect the distributions of foreign aid. Two thirds of all foreign aid are funded and managed by the State department or other agencies like USAID (U.S. Agency for International Development) they provide humanitarian assistances and political developing.
The effects of war can be quite vicious especially on countries that are already extremely poor. The reason that poor countries with natural resources suffer the most in these civil wars is due to the potential riches that can be gained. War is even more of a problem when it’s in a developing country or between a developing country. As of today, most of the worlds wars and conflicts are no longer between different countries but within them. According to the report, civil war combatants do not care about the costs of civil war because civil war affects them less severely than it affects civilians. A society during the civil war reroutes some of its resources from productive activities to violence. The results of this means the society loses two times. The Rerouted resources are lost to productive activity, analogous to the loss from the economist call rent seeking.
The countries of India and China only had to worry about immediate area defense zones and were not engaged in the Cold War run-up in the arms race between the US and the USSR, both nations could focus on regional defense and devote more of their GNP to growing their economies, building out infrastructure, developing export markets and remaining independent and capable of staying on the sidelines, away from the fray. https://www.quora.com/What-are-the-impacts-of-the-Cold-War-on-India-and-China-Did-the-Cold-War-influence-India-and-China-How-and-Why India and China had non-aligned statuses during and throughout the Cold War between the Soviet Union, U.S and NATO and its allies, India escaped the economic cost that was associated with being aligned on one side of the other. Also, the same for China.
Leaders in china incorporated capitalism into their political system by having a mercantile system of commerce that favored the indigenous industries and manufacturing over imports, which eventually turned into a one-sided trade and provided a massive foreign currency reserves.
India leaders used foreign aid to help raise their country out of it’s terrible slum and poverty so they can stand on its own two feet. Eventually India became more stable than they were before foreign aid. They benefited from non-aligned status during the Cold War by playing one side against the other. Taking advantage of its position and its size of the market drawing in both sides of the USSR and the United States. For so many years India purchased its military equipment mainly from the Soviets, even until this day India still uses Russia as their main supplier for aircrafts, missiles and other military system not as much with the United States.
Fueling and having wars seems to be more of a success with foreign policy then peace. They can’t make a profit or benefit off of peace.